That means businesses can set up cross-border accounts from Singapore without having to travel overseas. The Commercial IBC also caters to foreign companies keen to trade or set up operations in Singapore. The idea is that customers need only liaise with the relationship managers at the Commercial IBC to establish banking relationships they need with HSBCÆs overseas offices.
According to the 2007 SME Development Survey by DP Information Group, the number of Singapore SMEs doing business overseas has been growing steadily over the last five years. Last year, 70% of SMEs were doing business outside of Singapore, which is an increase of 11% over the previous year. Of the 70% with overseas business interests, almost 60% have been operating overseas for more than three years.
Recognising this development, HSBC commissioned some research to gain a deeper understanding of the growth challenges that SMEs face, in particular in internationalising their businesses. The study found that the common challenges facing SMEs with aspirations to go overseas or which are already doing so are: difficulties in dealing with bank staff in destination countries who do not understand their businesses well; obstacles and hassles in opening bank accounts overseas; the complexity involved in organising collections and payments in multiple bank accounts in different countries; and challenges in navigating complex rules and regulations in the destination countries.
"SMEs are a key segment of our commercial banking business here at HSBC. We proactively engage our SME customers to understand the challenges they face and respond to their aspirations and needs," says Tan Siew Meng, head of commercial banking at HSBC Singapore. ôWe hope to provide customers the comfort of dealing with someone who is familiar with their business and who speaks their language."
HSBC is billing this as the first time ever its customers can walk into the Commercial IBC to set up corporate bank accounts with any HSBC overseas offices without the hassle of travelling overseas, liaising with bank staff in other countries, overcoming language and cultural barriers, and navigating through complicated foreign country regulations.
HSBC will also streamline and accelerate the account opening process for customers by assisting to prepare and submit on their behalf the required documents to its overseas offices, thereby providing a simple, fast and convenient platform that greatly facilitates and expedites the cross-border account opening process.
To help lure customers -- HSBC is offering new customers a complimentary bottle of wine if they open a corporate bank account in Singapore from now till end May 2008. In addition, each new account opened will enjoy discounts of up to S$750 on their trade transactions, up to 50% rebates on outward TTs, as well as S$1,000 worth of shopping vouchers if they meet certain qualifying criteria during the launch period.
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